Thames Water swung to a post-tax profit of £113 million for the year to March 2026, recovering from a £1.51 billion loss, though net debt climbed to £18.5 billion and the utility faces mounting political pressure.
The UK government rejected a £10 billion rescue proposal from the London & Valley Water consortium, which had sought a four-year waiver on sewage-related fines. Environment Secretary Emma Reynolds said the plan would impose an undue burden on consumers and failed to adequately protect customers and the environment. The company, which serves 16 million customers across London and southern England, said it retains sufficient funding to operate through the end of 2026.
The utility reported an 18 percent reduction in pollution incidents and met 11 of 20 regulatory performance targets. Incoming Prime Minister Andy Burnham has called for greater public oversight of the struggling water provider.